1. Most voters are homeowners, and want their loans, or their neighbors’ loans, forgiven.
2. Most voters see themselves as borrowers, not savers, and are OK with programs that transfer wealth from savers to borrowers.
3. A minority of the population are very concerned about fairness. Enough lip service is being paid to moral hazard to fool the majority of this minority into believing that people in power are trying hard to avoid moral hazard.
4. The wealth transfers from savers to borrowers who own homes will cause home prices to be materially higher than they would be in a free market.
And, BTW, SDR, last year I was posting on this site that there would be massive govt efforts to keep home prices high and benefit borrowers at the expense of savers. It was obvious from day 1. I recall DaC agreeing.
